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Introduction
animals wearing glasses. The advertisement was a poor choice since animals are
considered to be a form of low life and no self respecting Thai would wear anything worn
by animals (Payne, website). Could the company have known about this before the
product launch in Thailand? Why did the company fail in spite of coming up with a
The reason for the company’s failure in Thailand was that they did not identify
themselves, advertising in this case, with the Thai culture and totally misjudged the social
customs of Thailand. The company could have been more knowledgeable about this had
their information from international marketing research been accurate. This is not an
isolated case, but stems from one of the many idiosyncrasies that exist in the markets
around the world. Some of the idiosyncrasies for select regions are listed in Table 30.1.
In this chapter, we first define international marketing research and find out about
the major players in the industry. Then, we move on to see how international market
research is done, the various methods of data collection, the biases and scales involved in
data collection and know how data is interpreted from one country to another.
1
What Is International Marketing Research?
The process calls for studying the various market characteristics for facilitating
marketing decisions that can be taken across countries. The studies deal with tracing the
various components that are responsible for the marketing the product.
disciplines as domestic research, has some differences compared to its domestic version.
• The national differences between countries arising out of political, legal, economic,
National Differences
The main factors that affect the way in which people from different cultures
behave are:
of a large group of people. It is defined as the values, attitudes, beliefs, artifacts and
other meaningful symbols represented in the pattern of life adopted by people that
help them interpret, evaluate and communicate as members of society. The need for
greater cross cultural awareness is heightened in our global economies. Cross cultural
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differences in matters such as language, etiquette, non-verbal communication, norms
and values can lead to cross cultural blunders as illustrated by the following
marketing mix:
Product: A soft drink was introduced into Arab countries with an attractive label
that had six-pointed stars on it. The Arabs interpreted this as pro-Israeli and refused
to buy it. Another label was printed in ten languages, one of which was in Hebrew-
Price: An American firm was trying to get an acceptable price for their product
from a Japanese buyer. The Americans presented a very detailed presentation and
offered what they felt was a reasonable price. After a few moments of silence, the
Americans thought the Japanese were going to reject the offer so they lowered the
price. There was more silence by the Japanese. The Americans then said they would
lower their price one last time and that this was the lowest they could go. The
Japanese accepted this offer after a brief silence. The Japanese later said the first
price was within an acceptable range, but it was their custom to consider the
proposal silently before giving their decision. The Americans lost a lot of profit by
jumping the gun and believing that Japanese respond just like the Americans do
http://www.cba.uni.edu/buscomm/InternationalBusComm/blunders.htm).
Place: A well known drinks company tried to introduce a two liter drinks bottle
into Spain, but found it hard to enter the market - they soon discovered this was
because few Spaniards had fridge doors large enough to accommodate the large size
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Promotion: When Pepsico advertised Pepsi in Taiwan with the ad “Come Alive
With Pepsi” they had no idea that it would be translated into Chinese as “Pepsi
b. Racial Differences: This would refer to the differences in physical features of people
in different countries. For example, the types of hair care and cosmetic products
needed in U.S would differ from those needed in South East Asia.
c. Climatic Differences: This would include the meteorological conditions like degree
of rain and temperature range in the targeted foreign market. For instance, Bosch-
Siemens had to alter their washing machines with a minimum spin cycle of 1,000 rpm
and Spain, on the other hand, it is sufficient to have a spin cycle of 500 rpm as there
d. Economic Differences: The level of economic development in a market can affect the
desired properties of a product and in this way can inspire a company to adapt its
products in order to meet the needs of the local market. The level of economic
The level of revenue and buying power of local consumers: This will have an
generally having a higher purchasing power and tend to prefer purchase of more
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The state of infrastructure in the market: The general level of the quality of
communication systems, etc. can affect how the product is constituted as it can
bring about different conditions of use. For instance when car manufacturer Suzuki
entered India, it had to reinforce the suspension or the “road clearance level” of the
the ingredients, that constitute them. For example, in Islamic countries, companies,
exporting grocery products based on beef have to furnish a certificate declaring that
the animals have been slaughtered respecting “Halal” methods. Alcoholic drinks are
f. Historical Differences: Historical differences help explain facts such as the playing
slowly evolved over time but have a profound effect on consumer behavior. For
example, drinking Scotch whiskey is considered prestigious and trendy in Italy, but
research. Inappropriate use of language could result in loss of market apart from
turning out to be a cross cultural gaffe. For instance, U.S. and British negotiators
found themselves at a standstill when the American company proposed that they
“table” particular key points. In the U.S. “Tabling a motion” means to not discuss it,
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while the same phrase in Great Britain means to “bring it to the table for discussion.”
(Ricks, 1999).
h. Differences in Actual and Potential Target Groups: In countries like England and
included because distances are not great. In Spain, interviews can be conducted only
in cities with populations of over 100,000 people, as the cost of interviewing people
In addition, the international marketing researcher may also have to deal with
other factors such as differences in the way that products or services are used, differences
in the criteria for assessing products or services across various markets and differences in
Comparability of Tasks
comparing the results and interpreting the implications when dealing with two or more
research that has been set up to provide as basis for an international marketing decision.
growing opportunities, they need to collect information from a broader and more diverse
range of markets. Increasingly, this entails conducting research in unfamiliar and distant
markets in the Far East, the Middle East, Latin America and Africa. This in turn poses a
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response to new and unfamiliar stimuli, and interpreting the implications thereof for
marketing strategy.
For many years, estimates have been provided of the size of national research
markets. These estimates have been based on data collected by national market research
trade associations and national research societies, along with the work of a few
individuals and earlier ESOMAR studies. It has been estimated that in terms of research
expenditure, the top three countries are the United States, the United Kingdom and
Germany, the United Kingdom, France, Italy and Spain (Demby, 1990).
The top 25 global research organizations earned $11.6 billion in revenue in 2003,
up by 1.4 percent over 2002 (Table 30.2). Of the top 25 global firms, 12 are based in the
United States and 67.3 percent of the revenue came from international operations
Honomichl, 2004). The worldwide marketing and opinion research industry now
accounts for about $17 billion of revenue and employs more than 650,000 people. About
1000 top clients’ countries are accountable for about 80% of the global turnover; 65% of
their MR budgets goes to 25 research providers. Ten countries account for over 80 % of
national scale. The complexity and sophistication of the operations changes as the
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company steps into international markets. The guidelines to these issues can be found in
the EPRG framework (Wind, Douglas, & Perlmutter, 1973). This framework identifies
These attitudes reflect the goals and philosophies of the company and help in
international operations.
In the ethnocentric stage, the top management views domestic techniques and
personnel as superior to foreign and as the most effective in overseas markets. The
company sees its domestic business as its priority and views foreign sales as a profitable
extension of its domestic sales. A company with this domestic market extension concept
typically identifies markets where demand is similar to the home market and where its
domestic product will be acceptable. Meter-Man Inc. could be said to follow this
orientation.
concept is of the view that country markets are vastly different and that, market requires
an almost independent program for each country. The company also believes in using
local personnel and techniques to suit the local market conditions. The company with
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such a multi-domestic market concept adapts its products without coordination with other
country markets; its advertising campaigns, pricing and distribution decisions being
In the regiocentric and geocentric stages, the company recognizes the regional
commonalities and undertakes regional strategies by considering the region or the entire
world as a potential market, ignoring national boundaries. The firm develops policies and
organizes activities on a regional or worldwide basis. Firms using this global marketing
concept design product lines, pricing decisions, promotions and the channels of
General Motors and several other companies follow this orientation and can be described
as global companies.
developing a standardized product of dependable quality, and sells it in the global market
at a reasonable price throughout the world. The global marketing concept is about
viewing an entire set of country markets as one unit, identifying groups of prospective
When evaluating foreign markets, several other factors need to be considered for
standardizing the products across markets. These factors can be grouped into foreign
and level of technology among others. So, while the marketing plan can be standardized,
a researcher will have to take into consideration the uncontrollable factors that will have
an effect on business in the respective foreign market. This process of considering the
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uncontrollable factors particular to a market into the overall marketing plan is known as
While the generalists consider the world markets as a whole, specialists take in all
the country and region specific factors that would govern the marketability of the product
in those markets. The effect of uncontrollables on a product can be seen in the case of
Nike. The logo on a new line of shoes represented flames or heat rising off a blacktop.
Unfortunately, the logo inadvertently resembled the Arabic script for the word “Allah”,
the Arabic word for God. After receiving complaints from Muslim leaders regarding the
use of this word on the shoes, Nike recalled the offending shoes (Associated Press, 1997).
This case shows how easy it is to offend when the uncontrollables are not properly
Hence global research calls for specialists and not generalists, since it is important
to address the country specific issues in the marketing process while researching new
markets.
more countries from the headquarters. Centralization of the project can add to the
complexity of problems with hierarchy and authority since such a study can involve staff
at the headquarters, staff at foreign offices of the company, foreign survey conductors
and possibly an overall survey coordinator. This can result in dispute, delay and
inefficiency.
Decentralized research is done when the researcher has the company office in
each country conduct the research based on the guidelines from the headquarters. In a
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decentralized research, the researcher in the foreign country should be able to conduct
research in the language specified by the headquarters or should be able to translate the
department with ad agencies in more than 40 countries developing ads for them. A new
team of executives were hired and all their marketing decisions were centralized in the
promotion, packaging, pricing, promotional materials, and advertising. They believed the
difference in the cultures were less important than the similarities. They wanted to use
one ad agency to develop one ad to be used around the world. Subsidiaries complained
that the pens may be similar, but the markets were not. When the same ad was used in all
countries, the ads tried to say something to everyone but ended up saying nothing to
anyone. The company’s campaign floundered following which the CEO was forced to
resign and the rest of the team either quit or were fired. The company then returned to a
http://www.cba.uni.edu/buscomm/InternationalBusComm/blunders.htm).
Thus, from the above example it is clear that due to a centralized research
approach, Parker Pens ended up with a centralized marketing strategy overlooking cross-
cultural values and norms. This marketing research blunder could have been avoided had
there been a decentralized research which would have recognized the various country
11
How Is Research Done Across Countries?
discussed below.
Single-country Research
This type of research is done when there arises a need for organizations to
conduct research in a single foreign country market. Typically, this need arises when a
researcher based in country A wants to know whether the marketing strategies that work
well in its domestic environment can be translated to a country market B. The single-
country research is useful in bringing out the unique characteristics of the foreign market
that would require adapting the product to serve the needs of the local consumers better.
Multi-country Research
more than one country market. Multi-country research can be further classified into three
broad categories:
international marketing research that can be seen in the industry today. Independent
products or test marketing of new products. The major disadvantages of this type of
research are that it often leads to duplication of effort (such as questionnaires, etc.)
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and since such studies are conducted in isolation, comparisons of results across
in the first one or two markets to be researched and then can be applied to the other
typically used when a product or service is the subject of rolling launch across
countries.
marketing research in multiple country markets simultaneously, and is, perhaps, the
capabilities and also creates in its most acute form, the question of comparability.
to consider whether the scores obtained are comparable. In order to achieve meaningful
addressed. Response bias is the systematic tendency to distort responses to rating scales
so that observed scores are unrelated to the true score of the individual by either selecting
to either end of the scale (acquiescence response bias) (Byrne & Campbell, 1999; Cheung
& Rensvold, 2000). The cultural tendencies belonging to different cultural groups, are
likely to change the responses of participants and make them incomparable across
cultural groups and therefore resulting in a bias (Fischer, 2004). Hofstede (1980) was
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among the first to advocate the use of standardization as an adjustment of raw scores in
Little, 1997, 2000) and Item Response Theory (Butcher, Lim, & Nezami, 1998; Huang,
Church, & Katigbak, 1997) can be used to identify whether different response strategies
were used by participants in different samples. Researchers can then decide whether they
want to standardize their data or not. There are four major groups of standardization
procedures. These four groups are (a) adjustment of means, (b) adjustment for dispersion
(e.g., using standard deviation), (c) adjustments using means and dispersions, and (d)
covariate analysis. These groups can be classified into within-subject, within-group, and
standardization.
for each individual using the mean for that individual across all variables (Hofstede,
1980). The average of a subset or all variables for that particular individual is subtracted
from each individual’s raw score. Hence, the resulting score is the relative position of the
individual on a variable in relation to the other scores. The mean across variables for this
individual will average to zero. This procedure is also called Ipsatization (Hicks, 1970).
common form is the computation of z scores whereby the group mean is subtracted from
the variable raw score and then divided by the standard deviation (Howell, 1997). Hence,
the resulting score is the relative position of one specific individual on one variable
relative to the position of other individuals in that group. The mean across individuals is
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zero and, assuming a normal distribution of responses, the resulting standard deviation
1991) is also available wherein, only the mean across individuals is used.
In the within-culture standardization (Bond, 1988; Leung & Bond, 1989), instead
of using the group mean across one item (as done in z transformation), the mean across
all items and all individuals (the grand mean) is used. It is possible to adjust this
deviation score by dividing it by the standard deviation across items and individuals.
Standardization can also be used (Leung & Bond, 1989). Initially, the scores are adjusted
within the individual (within-subject standardization), and then the resulting scores are
adjusted within the group (within-culture standardization). Thus, the means for each
individual across variables and the mean for each variable across individuals will be zero.
Assuming normality of the raw data, the adjustment using the standard deviation should
yield standard deviations of 1 for both individuals across variables and variables across
individuals.
It is important to note that these standard procedures can be done both at item
level and at construct level. One may standardize individual items using the relevant
mean across either items or individuals or one may standardize the mean for one specific
construct using the relevant mean across either items, constructs, or individuals.
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Personal Interviews tend to be the dominant mode of data collection outside the
United States and Canada (Monk, 1987). Lower wage costs imply that personal
procedures are cheaper than in the United States. In Latin countries, and particularly
in the Middle East, interviewers are regarded with considerable suspicion. In Latin
countries, where tax evasion is more prevalent, interviewers are often suspected of
being tax inspectors. In the Middle East, where interviewers are invariably male,
Mall Intercept Surveys are very popular in the United States and Canada, though
India, which is predominantly rural, the telephone penetration is only 1 percent, and
hence telephone surveys may not be the ideal method to adopt Sopariwala, 1987).
only 80 percent, and telephone interviewing is not widely used because many
practitioners are still skeptical about it. In Britain and France, there are substantial
declines in telephone response rates in large cities. The Eastern European countries
and countries in the newly formed Commonwealth of Independent States have a poor
be a good idea.
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However, with the decline of international telephone costs, multi-country studies
can be conducted from a single location. This significantly reduces the time and costs
establishing quality controls, and so on. Although the additional costs of making
international telephone calls are incurred, these may not be highly significant when a
centralized location is used. International calls also obtain a higher response rate.
Results obtained using this technique has been found to be highly stable. Interviewer
Mail Surveys in international settings can have limitations because of the absence
of mailing lists, poor mail services, and high levels of illiteracy. For example, mail
surveys are ineffective in countries such as Brazil, where it has been reckoned that 30
percent of the domestic mail is never delivered; or Nicaragua, where all the mail has
to be delivered to the post office. Even in countries where literacy levels and mail
services make the use of mail surveys feasible, a tendency to regard surveys as an
invasion of privacy may limit their effectiveness. Thus, while mail surveys may be
appropriate only in industrialized countries where levels of literacy are high and
that it is important for the moderators to be conversant with the language and also the
patterns of social interaction and the nonverbal cues used by people in that part of the
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• Women in the Middle East do not have as much freedom as women in the
Western world.
•
The Japanese hesitate to criticize new product ideas.
• Timeframe: Many companies in the United States and Canada are used to
longer, more so in the Far East. A good estimate would be to calculate the
time required for the research in the United States and double it for Europe.
six people, versus eight to ten in the United States. The focus group
States are screened and recruited in a rigid manner. These processes must
U.S moderators. This can result in long periods of silence and digression.
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This is because foreign moderators feel it necessary to allow the group to
settle down and establish trust to build up the necessary comfort. Foreign
focus groups tend to use fewer external stimuli, such as photos and visual
aids.
integral part of the culture it emanates from. Thus languages reflect their cultures of
origin in the words and varieties of words used for particular objects. This is why
Bedouins have an ample vocabulary for types of sand and Mexicans for types of hot
peppers. Language will be one of most important challenges among other issues like
market research, distribution channels and dealing with legal and banking issues, when
entering into international markets. In all these challenges, it is essential not to make
In a recent study conducted in 2000, it has been found that about 70% of all US
asked about language of preference for communication when given a choice, 58%
indicated they preferred Spanish, 27% said English, and 14% indicated not having a
Research studies have shown that only 28% of the entire European population
can read English with percentage even lower in South America and Asia. This means that
languages is vital. According to the U.S State Department, U.S companies stand to lose
$50 billion in potential sales from poor translations. Companies get themselves into
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trouble with translations that are inaccurate or culturally inappropriate. Professional
translations on the other hand will convey a high quality image of products or services
Over the past few years, trends toward globalization have led international
opportunities in today’s highly competitive global market. When time, budget and
resources are no object, a company can afford the best that international research has to
offer. However, today’s economic downturn has compelled many businesses to face the
harsh reality of shriveling timelines, slashed budgets and limited resources, therefore
limiting their international research choices. Having said that, making concessions and
trade-offs doesn’t necessarily mean that enterprises have to compromise the quality of
their international research in the process. In the context of the legitimate constraints
caused by today’s economy, it is essential that market researchers be aware of the need
Companies with a worldwide presence must conduct research across all their
global markets, present a combined corporate view, and contrast these markets to identify
hot spots for special initiatives or new ventures. They need methods to minimize cultural
effects and adjust results to differentiate response pattern differences due to language or
cultural norms affecting surveys from real differences in performance or perceptions due
to products, services, or market conditions. Hence, it becomes essential on the part of the
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that data collection poses, poses a challenge to the researchers (Devlin & Nicholas,
2004).
So how does one get good translations? Though there are online translation
resources available, it may not be sufficient considering the cultural, regional and
language disparities within the foreign market. It is always advisable to take professional
help as it is critical to relate to the native speakers and the online resources may not be
adequate in that regard. To illustrate the need for a professional help, here is an example
A U.S. toothpaste manufacturer promised its customers that they would be more
“interesting” if they used the firm’s toothpaste. What the advertising coordinators did not
To find a trustworthy and reliable translation service would be the next step. In
the age of electronic communications, the researcher need not be limited to a local search.
Translations can be easily delivered by e-mail, and under most circumstances, the project
details can be discussed over phone. However for other logistical reasons, the researcher
may find it more convenient to work with a provider in the home country. The following
a. Native Speakers: It is important to find out if the provider works with translators who
are native speakers of the languages. This is so because only native speakers have a
perfect feel for their language. Working with native speakers will ensure that the
translations sound natural to the audiences of various countries, and not like a
21
translation from a foreigner. For example, a blonde woman is called a rubia by
b. Specialist Knowledge: It may not be enough to just speak the language. The people
who translate the material must know the industry and the market in particular.
c. Location: The best translators are those who work from their native countries. As they
are up-to-date with current developments and changes in the languages, it would be
d. File Formats: To avoid extra work and costs, the researcher can choose a translation
firm that can work with the same file formats as the researcher would use.
Once the translation provider has been decided upon, the researcher can work
together with them closely in order to maximize the quality of the translations. While the
researcher must allow sufficient time for the translation, it should also be made sure that
the source material is written well. Providing as much background material as possible
would help the translators understand the product-specific needs and hence result in a
Much empirical research involves comparison of two or more groups and the
interest. The results of a study undergo statistical analysis based on the assumption that
the groups are representative of the defined population and that the measurements taken
on the sample were true reflections on what the researcher was actually trying to
measure. In reality, however, a number of biases can complicate the analysis and
interpretation of data.
22
Bias may be defined as any factor that tends to produce results or conclusions that
bias from many sources, including errors in statistical analysis. Most errors related to
statistical analysis relate to failure to use appropriate statistical methods. Some examples
the researcher. The first step would be to try and understand the research problem from
the perspective of the foreign country. This is easier said than done because the root of
the problem may be the researcher’s lack of sensitivity and understanding to such cultural
backgrounds in the research team so that the team as a whole can consider all of the
different facets of the research problem. At every stage of the research process, the
researcher who is familiar with the specific culture takes the lead in conducting the study
As with quantitative research, much of the potential for bias can be minimized
through rigorous study design and the employment of various techniques. These include
researcher and participant into the study design; and 'triangulation', whereby information
23
obtained is considered tentative until corroboration by information collected by other
means.
Douglas & Craig (1983) suggest that designing scales for international marketing
research calls for a great deal of adaptation on the researcher’s part. It has to be decided
whether a single scale can be used in all of the countries or whether it should be
however, people in countries such as France, are familiar with a 20-point scale.
Semantics play an important role in the accuracy with which a scale measures any given
attribute. Some cultures tend to overstate their feelings, while many others are modest.
The word ‘excellent’ may connote different levels of perfection to Japanese and Italians.
The scales used in domestic marketing will not be helpful to the researcher in analyzing
the international market. This may be due to low educational or literacy levels and
It has been observed that verbal rating scales work the best in international
context. All respondents are accustomed to verbally express their feelings, irrespective of
the country or the culture to which they belong. There could, however, be a problem with
these scales. In some countries, 1 would be rated as the best while in other countries it
would be the least preferred choice. The researcher should clarify this before asking
Research has been conducted to find out whether there is a pan-cultural scale. The
semantic differential scale seems to be the closest to being a true pan-cultural scale. It
consistently gives similar results in terms of concepts or dimensions that are used to
24
evaluate stimuli, and also accounts for a major portion of the variation in response when
is to apply techniques that use a base referent, a self-defined cultural norm. This type of
When crossing cultural borders, the very meaning of a scale may change and
classical quality indicators such as reliability and validity may be strongly influenced by
It is important for the researcher to be able to compare data across countries and
hence, it is essential to examine the various aspects of data collection process and
conducted in Europe (Min-Han et al., 1994). While initial data suggested that the
percentage of Belgian women taking baths was far higher than any other nationality; a
closer look at the data revealed that the time period was not comparable. In Belgium the
women were asked if they had taken a bath in the last seven days. In all other countries
the question had been, “Have you had a bath in the last three days?” The types of
Construct equivalence deals with the function of the product or service that is
being researched and not the method used in collecting the information. Different
countries that are being must have the same perception or use for the product that is being
25
researched. If this is not the case, comparison of data becomes meaningless. For example,
if the bicycle market is being studied, it should be understood that it comes under the
category of recreational sports in the United States and as a basic means of transportation
calibration system used in measurement (Kumar, 2000). This would include monetary
units, measures of weight, distance and volume and perceptual cues like color, shape
or form. Various countries around the world follow different units of weights and
measures. Americans are used to weighing things by the pound or ton while the
British and most of the commonwealth countries use the gram and kilogram. If the
wrong terminology is used, responses will not be accurate. This is true for currencies
also. For instance, one billion in the United States may not mean the same amount in
the United Kingdom. Researchers should also take care to establish equivalence in
different cultures. White, for example, is considered a symbol of purity and peace in
the Western world but, a color of mourning for the Japanese (Jacobs et al., 1991). In
the People’s Republic of China, notes written using red ink suggest that the writer
will die soon and the number four should be avoided at all costs as this too signifies
death.
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b. Translation Equivalence – The research instrument has to be translated such that
respondents in all countries involved in the study understand it. The instrument
should also contain equivalent meaning in each research context. This becomes more
complicated when the researcher has to interpret and translate nonverbal clues. It may
lack of equivalent words in the foreign language. For instance, there is no equivalent
term for “husband” in Japanese. The researcher should focus on conveying the intent
of the question to the respondent and obtain an answer that can be comparable across
measure used. The researcher has to ensure equivalence of the scaling or scoring
procedure used to establish the measure. Care should also be taken to establish
scales used in different countries may vary depending on the culture and education
typically use a five or seven point scale; however, there are countries where scales
people incapable of reading, pictorial scales are used. The specific country also
determines whether the scale should be unipolar or bipolar and whether there should
be a neutral point on the scale. For instance, researchers studying the Japanese market
design scales with no neutral point, as the Japanese tend to remain neutral if given a
choice. The researcher should also ensure equivalence of the response to a given
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Lack of metric equivalence in the complete set of measures may occur due to
questionnaire items on some other criterion that what the items were supposed to
to clean observed scores from stylistic responding by regressing the raw summated
instance, if the purchasing behavior regarding toys is being studied, researchers need to
understand that while in the United States children get to select their toys in other
countries parents may make the purchase decisions. Hence while collecting information,
Analysis equivalence deals with addressing the various biases that might exist in
problems. For instance, Japanese tend to take a neutral point, so it is wise to avoid a scale
with a neutral point in order to obtain useful information. Likewise, Latin Americans and
Italians tend to exaggerate their response and Americans do not typically go into details
with open-ended question. Factors such as this should be kept in mind while designing
important task and requires judgmental decisions on the part of the researcher. The
researcher will have to decide on the methodology that will work in the respective
country.
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How to Conduct Market Research with a Small Sample Size?
smaller sample size, thereby putting a check on the research exercise. This may also
affect the subsequent analyses that follow the sampling stage. In such a scenario, it is
advisable to go in for country pooling technique. That is, similar countries can be pooled
to get a sufficiently large sample to carry on with a ‘normal’ research process. The key
here, is to identify similar countries that can be pooled together for, the otherwise may
lead to highly skewed and unusable research results. The pooling can be done according
This type of similar pooling would give the researcher a larger sample to work with,
apart from keeping the research results from being skewed. Factors such as economic
wealth, market potential index, Gross National Product (GNP), population, inflation,
price levels, unemployment rate and interest rates are some of the factors can be
pooling would be suited for studies involving effects of prices on sales and marketing
mix models.
b. Cultural setting – The cultural setting is probably the most challenging among the
three factors to international marketers. The cultural factors that can be considered for
lifestyle, religion, language, literacy, values, work ethics, role of family and gender
roles among others. For this type of pooling, Hofstede’s classification of countries on
29
Masculinity Vs. Femininity and Strategic Orientation (short term vs. long term) may
be utilized. The challenging part of getting this pooling right is that, the marketer
must be aware of the frame of reference used in their decision to pool any set of
divided neatly in half, between Flanders in the north and Wallonia in the south
(Sager, 1997). While the Flemish people use margarine, Walloons use butter. Thus,
cultures could vary within a single country and this factor should be considered while
adopting a culture pooling technique. This type of pooling would be suited for
proximity can be considered. Factors that can be considered for this type of pooling
can be size of the country, its close neighbors, common climatic conditions and
demographic indicators among others. This type of pooling would be helpful for
that are geographically closer. For instance, even though Canadian market may feel
similar to the United States market due to their geographical proximity, both
Thus clubbing of countries into similar pools would help researcher in solving the
small sample size problem. The key here is to, consider the nature of the study and then
use appropriate pooling technique to achieve significant research results that can be better
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Interpretation of Data from one Country to Another
and it is entirely dependent on the researcher. This is where the Self-Reference Criterion
(SRC) comes into play. The researcher may have problems attributing the right reasons
choose a product that has been packaged in aluminum container instead of a plastic
carton, the reason could simply be that the consumer plans to use this container for
storage purposes after the contents have been used. An American researcher could not be
faulted for attributing reasons of efficient recycling as the motive for this purchase. This
error in interpretation could mean a big blunder when it comes to positioning the product.
to one country and then coordinate and compare across countries. Here, both researchers
who are familiar with the country and those who are not, examine the instruments and the
data and draw conclusions. The second method of considering one country at a time and
then comparing is preferable even though it is time consuming. This method also poses a
Strategies
The success of any international research study is, how well the cross-cultural
research insights translate into cross-cultural strategies that can used effectively in real
time. Based on the emergence of globally shared meanings, (Alden, Steenkamp, & Batra,
31
1999) has designed a new brand positioning strategy designed to assist international
marketplace. The global consumer culture positioning (GCCP) strategy is defined as one
that identifies the brand as a symbol of a given global culture. This is done by using
associated with other signs such as language, aesthetics and themes that reflect the
cultural orientation. Examples of brands that have used such strategies include Sony
(“My First Sony”), which positioned one of its products as appropriate for young people
around the world; Philips (“Let's Make Things Better”), whose advertisements explicitly
feature people from different countries; and Benetton (“The United Colors of Benetton”),
positioning (LCCP) strategy. This strategy is defined as one that associates the brand with
local cultural meanings, reflects the local culture's norms and identities, is portrayed as
consumed by local people in the national culture, and/or is depicted as locally produced
for local people. Examples of brands that have utilized this strategy include, Chevy
Trucks and Dr Pepper soft drinks. They have been positioned in U.S. as part of the
The third type of consumer culture positioning is the foreign consumer culture
symbolic of a specific foreign consumer culture; that is, a brand whose personality, use
occasion, and/or user group are associated with a foreign culture. For instance, the use of
32
“Singapore Girl” in Singapore Airline's global media advertising indicates the association
There are three central components to a cultural symbol set. They are language,
aesthetic styles, and story themes. As the primary language of international business, the
mass media, and now the Internet (BusinessWeek, 1996), English signals modernism and
is to use English words, written and/or spoken, in its communications. However, a brand
manager incorporating LCCP would want to highlight the local language. And for using
FCCP, a brand manager may use spoken and written words from the foreign culture in its
The English language consists certain aesthetic styles that are becoming
recognized as part of global consumer culture. For instance, while using spokespersons in
advertising, it is possible that a separate set of characteristics would reflect GCCP and
thereby, lend to the brand a more global image (e.g., Michael Jordan for Nike). While, an
reflect local culture, a German engineer spokesperson for Audi in a U.S. television
aesthetic construction and display of brand logos. For instance, certain logos may be tied
less to specific cultures in terms of their appearance, such as AT&T (abstract globe),
Nike (swoosh), Royal Dutch/Shell (shell), Mercedes-Benz (three pointed star) among
others. Certain logos may be more symbolic of specific cultural traditions, such as Cathay
33
Pacific, when they changed their logo to a white Chinese calligraphy stroke that suggests
the wing of a bird to “give itself a more Asian air” (The Asian Wall Street Journal
Weekly, 1994). It is also possible that most consumers would view the logo in its
aesthetic entirety (including shape, color, texture, and overall design) and form
that favor the use of GCCP, FCCP, or LCCP, is an important issue for mangers. While
there are brands that use LCCP or FCCP, there is also the case of locally based marketers,
who use GCCP, to fight global brands. For instance, local brands in Indian market such
indicate that their product is of international quality. Thus, managers have to ascertain the
country, consumer segment, and product category factors in order to come up with a
suitable strategy that would convey their brand(s) effectively to the targeted audience.
Summary
International Marketing Research thus links the organization with its future
market specific problems and opportunities, and develop courses of marketing action.
The research activity must recognize the country specific diversity in terms of culture,
demographics, economy, etc. to yield a marketing strategy that will be both applicable
and successful.
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Table 30.1
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Table 30.2 Top 10 Players in IMR Industry (in 2003)
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Figure 30.1
Equivalences in
International
Marketing Research
Source: Adapted from Kumar V, “International Marketing Research”, (Prentice Hall, 2000)
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